Interest rates decision 'should inspire more confidence'

CommSec chief executive Craig James believes that the Reserve Bank of Australia's (RBA) decision not to cut interest rates this week should inspire confidence.

Many people may find it hard to agree at the moment, but Mr James feels that low rates of inflation and unemployment are encouraging and the rapid growth recently seen in the nation's economy is also cause for optimism.

Writing for Advisor Voice, the financial expert said the RBA is still in a position to lower the national cash rate should things take a turn for the worse – but he hopes it won't come to that.

The RBA has slashed interest rates by 125 points since November 2011, although it opted to keep things the same in July and August, as board members deemed economic conditions to be favourable.

"Retailers have reason to be hopeful. Consumers are starting to spend again, buoyed by an array of stimulus measures," Mr James remarked.

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